Memphis, Tennessee, USA 08 March 2017 -- /PRNewswire/ -- International Paper (NYSE: IP) received a dividend of $121 million from Ilim Group, IP's joint venture partner in Russia. The dividend is based on prior year performance, and in 2016, the JV set production records at all three of its mills and realized higher sales volume due to increased demand for its products. Since inception in 2007, IP has received a total of $516 Million in dividends from the Ilim JV.
"This dividend reflects the significant progress we've made together during the past 10 years," said Mark Sutton, Chairman and Chief Executive Officer. "This summer marks the 10th anniversary of our joint venture with Ilim, and we are very pleased with the investment and the relationships we've forged as we work together to create an even better business. The business is focused on serving customers in key markets such as Russia, Asia and Europe with a world class, low cost asset base and excellent commercial capabilities. The JV is a great example of IP's strategy of establishing advantaged positions in attractive markets."
A key element of Ilim's strategy was the 2014 completion by the JV of a $1.5 billion capital investment over a five-year period at two of its three mills. This unprecedented investment in the Russian pulp and paper industry upgraded equipment, increased production capacity and allowed for high-value product development. Additionally, the investment was a key element in the JV's strategy to improve environment, health and safety standards across operations.
About International Paper
International Paper (NYSE: IP) is a leading global producer of renewable fiber-based packaging, pulp and paper products with manufacturing operations in North America, Latin America, Europe, North Africa, Asia and Russia. We produce packaging products that protect and promote goods, and enable world-wide commerce; pulp for diapers, tissue and other personal hygiene products that promote health and wellness; papers that facilitate education and communication; and paper bags, cups and food containers that provide convenience and portability. We are headquartered in Memphis, Tenn., and employ approximately 55,000 colleagues located in more than 24 countries. Net sales for 2016 were $21 billion. For more information about International Paper, our products and global citizenship efforts, please visit internationalpaper.com.